VANCOUVER, March 12, 2014 /PRNewswire/ - American Hotel Income Properties REIT
LP ("AHIP") (Toronto Stock Exchange: HOT.UN; OTCQX: AHOTF) today announced the
closing of its previously announced acquisition (the "Acquisition") of a portfolio of four hotel properties (the "Acquisition Properties") located in Virginia for an aggregate purchase price of approximately
US$37.1 million, including up to US$1.6 million for defeasance of
existing debt, and before customary closing and post-acquisition
adjustments. The purchase price does not include a US$6.0 million
restricted cash reserve established by AHIP for brand mandated property
improvement plans (the "PIPs") related to the Acquisition Properties.

The Acquisition Properties represent a total of 403 guest rooms in
Virginia and consist of three Hampton Inn hotels (a brand controlled by
Hilton Worldwide, Inc.) and one Fairfield Inn & Suites hotel (a brand
controlled by Marriott International, Inc.). The properties are located
in Harrisonburg, Emporia and South Hill, Virginia, near transportation
hubs and other major demand generators such as James Madison
University, manufacturing facilities, distribution centres and medical
centres. The properties cater primarily to corporate travelers seeking
select-service lodging.

AHIP funded the purchase price for the Acquisition and the financing of
the PIPs using a combination of cash from AHIP's bought deal offering
of subscription receipts that closed on October 31, 2013 and new CMBS
financing.

Robert O'Neill, AHIP's Chief Executive Officer, commented, "This
investment is consistent with our stated growth strategy targeting
acquisitions of transportation-oriented and select and limited-service
hotels, located in secondary markets in the United States in close
proximity to railroads, airports, highway interchanges and other
transportation hubs and demand generators. All four properties are
proximate to Interstate highway exits. James Madison University in
Harrisonburg, a NCAA Division I school with approximately 20,000
students enrolled, is an ideal lodging demand generator. The ten-year,
4.97% fixed interest rate CMBS financing also highlights a key aspect
of our conservative approach to leverage, aimed at providing highly
stable returns to our unitholders."

Mr. O'Neill continued, "This high-quality and well-maintained portfolio
has been purchased at a price below our estimate of its replacement
cost, in markets that have strong underlying fundamentals with
expectations for near term growth. Through accretive acquisitions and
the expansion of our existing rail portfolio, we intend to capitalize
on the growth in the US hotel industry and continue to utilize the
substantial availability of low cost CMBS financing."

Certain statements contained in this news release may constitute
forward-looking statements. Forward-looking statements are often, but
not always, identified by the use of words such as "anticipate",
"plan", "expect", "may", "will", "intend", "should", and similar
expressions. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking
statements. Forward-looking statements in this news release include,
without limitation, the following: references to the purchase and
closing costs of the Acquisition Properties; local lodging demand
generators; the completion and estimated costs of PIPs; the near term
growth of the Acquisition Properties and US hotel industry overall; the
availability of accretive acquisition opportunities; expansion of the
AHIP rail portfolio; and future availability of low cost CMBS
financing.

Forward-looking information is based on a number of key expectations and
assumptions made by AHIP, including, without limitation: a reasonably
stable North American economy and stock market and the ability to
successfully integrate the Acquisition Portfolio. Although the
forward-looking information contained in this news release is based on
what AHIP's management believes to be reasonable assumptions, AHIP
cannot assure investors that actual results will be consistent with
such information.

Forward-looking information reflects current expectations of AHIP's
management regarding future events and operating performance as of the
date of this news release. Such information involves significant risks
and uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. Actual
results could differ materially from those currently anticipated due to
a number of factors and risks. These include, without limitation, those
factors that can be found under "Risk Factors" in AHIP's Annual
Information Form dated March 28, 2013 and AHIP's Management's
Discussion and Analysis dated November 7, 2013.

The forward-looking statements contained herein represent AHIP's
expectations as of the date of this news release, and are subject to
change after this date. AHIP assumes no obligation to update or revise
any forward-looking statements whether as a result of new information,
future events or otherwise, except as required by applicable law.

About American Hotel Income Properties REIT LP

AHIP is a limited partnership formed under the Limited Partnerships Act (Ontario) to invest in hotel real estate properties located
substantially in the United States and engaged primarily in the
railroad employee accommodation, transportation and contract-focused
lodging sectors. AHIP's long-term objectives are to: (i) generate
stable and growing cash distributions from hotel properties
substantially in the US; (ii) enhance the value of its assets and
maximize the long-term value of the hotel properties through active
management; and (iii) expand its asset base and increase its AFFO per
Unit through an accretive acquisition program, participation in
strategic development opportunities and improvements to its properties
through targeted value-added capital expenditure programs.

Additional information relating to AHIP, including its other public
filings, is available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.

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RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.